We heartily congratulate the founders of the new society. They
could not do a better piece of work. If the world is to get through the present crisis satisfactorily it can only be by a proper understanding of economic laws and conditions. Again, only through that understanding can Labour achieve what it ought to achieve and what all good citizens want it to achieve— complete emancipation and its full share in the profits of pro. duction. Fortunately, economic science is almost as simple as it is important. It rests upon the due understanding of two things. The first is that material wealth, the universally desired, is the outcome of exchange. That is why the economic science is the science of exchange. The second, thing is a clear under- standing of the nature of economic value. Value is the result of demand and nothing else. No Demand no Value is a funda- mental. It is demand and only demand that clothes a material object with value. The greater or less the degree of value, i.e., price, is caused by the ratio between demand and the supply. If we once forget this and consider that value is also given to a thing by the limitation of supply we end through a fatal chain of reasoning from wrong premises in the poisonous sophistries of Marxism and the paradoxes of over-produetion.
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